Confusion regarind claiming a tax rebate whilst unemployed

Bowlstar

I lost my job 4 weeks ago on 16th of October and was paid a final wage on 30th October for the work I had done up until the day I became unemployed.

I am still unemployed and signed up for Universal Credit last week and should receive a payment 4 or 5 weeks from now.

According to HMRC's tax-checker I'm due a tax rebate of £2199 because I've been made unemployed during the tax-year.

So I called HMRC, and I waited an hour in the queue, only to be told that I need to wait 35 days from my last paycheck to claim a rebate, which means I have to call back after November 4th.

I was under the impression that I had to wait 4 weeks (28 days) from the date I became unemployed, not 35 days from the date of the last paycheck I received.

So is the information given to me today accurate, or has the agent who fielded my call made a mistake, and if so can I reasonably expect more joy out of them tomorrow should I decide to wait another precious hour in their phone queue?

Secondly, the HMRC website states that you must not be claiming a taxable benefit in order to claim a tax rebate. I take it Universal Credit is not a taxable benefit?

Finally can anyone shed some light on how I will receive my tax rebate? Will it be sent to me at the end of the tax year? Will the amount of tax I have to pay in my next job be reduced or will I be given a check/lump sum? Is the method of payment affected by my employment status?

patanne

Universal credit is a taxable benefit. If you are claiming you should get a rebate at the end of the tax year. If you find work then your first pay there (or maybe your second) will take into account your previous employment, your universal credit and also the tax paid in your previous employment. This should mean a rebate in your first (or maybe second - it depends on how good they are with paperwork) months income. It is extremely unlikely that they will issue a mid year rebate to someone who is expected to restart work very soon.

Bowlstar

Thanks for your reply. I've been doing a bit of digging and found out the following:

According to HMRC - Universal Credit is tax-free - gov.uk/income-tax/taxfree-and-taxable-state-benefits

I have also just found out that they do indeed send a cheque quite soon after applying for the rebate, even during the tax year. You can even get it paid into your bank account if you like.

For anyone who is struggling with this, you can complete and print a P50 online, as long as you have been unemployed for 4 weeks and have your P45 (parts 2 and 3).

So I am just going to apply by post as it will surely be quicker than phoning.

Hope this helps someone

Caz3121

Bowlstar wrote: »

According to HMRC's tax-checker I'm due a tax rebate of £2199 because I've been made unemployed during the tax-year.

were you not on PAYE whilst you were working? that is a huge amount to be owed after being unemployed for such a short period
what was your total pay to date and tax paid to date...if you start a new job before the end of the tax year then you will have additional unused allowance which means you will pay little/no tax until you have caught up

patanne

I didn't realise that the new version of unemployment benefit was no longer taxable. Maybe it is because the DWP can't get a P45 right.

Anatidaephobia

Bowlstar wrote: »

So I am just going to apply by post as it will surely be quicker than phoning.

It is correct that you have to wait 35 days after the date of your final payment from your last employer.

If it were me, I would phone them after 35 days had passed, with my P45 to hand, because that would be much quicker than waiting for them to deal with a letter. Phone just before 8am.

(I am assuming you meant 16th and 30th September in your first post.)

sheramber

Any repayment due will be for the weeks that you have been unemployed. So if it is 4 weeks since your last pay date then the tax will be worked out to the date of your claim.

You will then be sent an updated P45 to hand in to a new enmployer or to make a further claim after another 4 weeks and so on , in 4 weekly instalments, until you start with a new employer or until the tax year end.

You will not get a refund based on your full year's allowance.

Bowlstar

Ah, yes, September! And, after sleeping on it, I've decided to do things by phone once the 35 days are up.

Caz3121

Bowlstar wrote: »

According to HMRC's tax-checker I'm due a tax rebate of £2199 because I've been made unemployed during the tax-year.

is there no chance you will have any further income before April?

how have you calculated the refund due?
working example
someone on £30k loses job after 6 months...by this point he has earned £15k and paid £1,940 in tax (which was deducted each month assuming he would earn the same for a full year)
they do not have any further income until the end of the tax year so it can then be worked out that, on £15k income he needed to pay £880 in tax but had already paid £1,940 so is due a refund of £1,140 this total is not know till the end of the tax year
If you plan on working it will get sorted out through your PAYE and you would pay no or little tax till it had caught up

Bowlstar

I'm going onto the New Enterprise Allowance program which will run until April, and should see me make very little in taxable income. Does that affect my ability to claim a tax rebate? I've got 24 weeks on the NEA program starting now.